IAG's Walsh Cuts 4,500 Jobs at Iberia

11/9/2012 6:50AM

IAG CEO Willie Walsh is slashing 4,500 jobs at Spanish subsidiary Iberia in an effort to get the airline's costs closer to those of other European carriers. Dow Jones's Steve McGrath says the success of Walsh's move is now up to the unions. Photo: Getty

This transcript has been automatically generated and may not be 100% accurate.

I ... the UN ... why he could still ... feel this ... is a lie in the area ... with a waltz CEO of the group of IAG group that owns the IKEA has with British Airways announced the cuts ... hide your reports a twenty five percent ... drop in profits well Steve McGraw has been falling the fortunes ... of the airline's Steve ... looks like we will stink like here it what he did she ... British Airways we did go on in DC nation because you know Iberia is all about costs they've gone fairly high costs ... aam IACI as it is a legacy thing is going Octomom and allow a long time ... and that you know they just Connell competes ... with the likes of Ryan at ... you with a haul Ivies jacket that are up against in knots by nation European domestic market is that because of ... this to be a one week I did not go as well as the draw yet often capacity yet that's right I mean bass the stock today write five they backed off of the long haul but the majority than twenty around to official told domestic and European market will it be enough no I mean they've got it for that ... it's a real threat day aimed directly at the union's coming from Chris Walsh on the Seattle ... PI Beer Wall St ... um you know my peers in a fight for survival the CA revise their himself say ... that we are making losses across the board to um to him and I made it feel to it is in the ... city was you mean by the Proms in the ... union now ... the object of this takeover of IPO its rights now how exactly is that things will be a will when he stopped and I mean I did go ... on to say the program is down in a domestic and and and European markets yesterday they did a deal to buy the rest of waning which is another of sort of European low cost that line ... now why didn't they do that he lost winning goal these phones because Wally a house to low-cost unique style already utilities uses its ... wide Bay area's Costco see it ... is to fifty one percent higher than the Savoy dealings to blading is when they want to go ... another was the kid that it is you know as as though this is the isthe is a small they've been up by two women have of either the sort of ... this is the ITT gentle with the the the means to you ... IAG IAG is is underperforming now the likes of loaf comes NFL scan and the big rivals in the market to get this delays for two or rip reporting Good Figgins you know that the cardamom is a struggling but actually ... it has been called the screams of Dom Michaels cooked and they they have made the singing and with the brave much destabilization that if the market at IAG bridges Airways is propping things up was did the job of fish that was gold's about to appear okay let's instead of filing as it is ... this is really this is a slowdown in the Spanish economy was facing here is ... a line and how much of it is IPO is love it all plays appalled but fundamentally it's Iberia's problems ... um you know whatever this takes him up and is bigger than Spain right up there flies run your flies to London to re South America ... yet there is the moment but had trouble ... it's about my period is about facing heavy competition a tunnel compete ... less against the cost of ... the will of easing is the isthe say that I don't ...